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Mean reversionLong & short5m15m1h4h

Liquidity sweep reversal strategy

Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.

Thesis

Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.

Fits Mean reversion setups — works best when the underlying market behavior matches the thesis, and breaks down when it doesn't. Pair with the backtester's walk-forward mode before committing real capital.

Advanced — sweep recognition is fast and noisy on short timeframes. Lots of small trades, occasional clean reversals when the sweep is the real local extreme. Pair with risk management; the entry triggers right into the wick.

YAML rule-set

Paste this into the Strategy Designer's Text tab, or use the dashboard button above to load it as a template.

_template:
  title: Equal Highs/Lows liquidity sweep reversal
  category: mean_reversion
  skill: advanced
name: liquidity_sweep_reversal
weight: 1.0
long_only: false
indicators:
  eq:
    kind: equal_highs_lows
    swing_length: 3
  c:
    kind: sma
    period: 1
entry:
  combine: OR
  rules:
    - combine: AND
      direction: short
      rules:
        - {lhs: {indicator: eq, field: eqh_swept}, op: gt, rhs: {value: 0}}
    - combine: AND
      direction: long
      rules:
        - {lhs: {indicator: eq, field: eql_swept}, op: gt, rhs: {value: 0}}
exit:
  combine: OR
  rules:
    - {lhs: {indicator: eq, field: eqh_swept}, op: gt, rhs: {value: 0}}
    - {lhs: {indicator: eq, field: eql_swept}, op: gt, rhs: {value: 0}}
risk:
  trailing_stop_pct: 0.04
  cooldown_bars: 3

Indicators

  • eqEqual Highs/Lows (swing 3)

    Tighter EQH/EQL detector — swing length 3 finds intraday liquidity pools. eqh_swept / eql_swept fire when price spikes through and closes back inside.

Entry conditions

The bot opens a position the bar after every condition below has fired.

  • Short on an EQH sweep — buy-side stops grabbed, sellers step in.
  • Long on an EQL sweep — sell-side stops grabbed, buyers reload.

Exit conditions

Any of the conditions below will close the position.

  • Opposite-side sweep closes the trade — that's the next liquidity event and the reversal leg is done.
  • 4% trailing stop, 3-bar cooldown.

Expected behavior

Advanced — sweep recognition is fast and noisy on short timeframes. Lots of small trades, occasional clean reversals when the sweep is the real local extreme. Pair with risk management; the entry triggers right into the wick.

Equity-curve character, not a return forecast. Backtests are not promises about live performance.

Try it on your own data

Open the template in the dashboard to backtest it on BTC, ETH, or any CCXT symbol — or copy the YAML into the Strategy Designer to edit it first.

Past behavior on backtests is not a guarantee of future performance. Markets change; rule sets need re-validation. Trade at your own risk.